How Do I Trade Inverted Hammer Candles Pattern?

Inverted Hammer xauusd candlesticks pattern is a bullish reversal candlestick pattern. It forms at the bottoms of a Gold trend.

Inverted Hammer xauusd candlesticks pattern occurs at the bottom of a downwards gold trend and indicates the possibility of reversal of the downwards Gold trend.

How to Trade Inverted Hammer Candlestick Pattern Bearish or Bullish

Technical Analysis of Inverted Hammer Candle Pattern

A bullish reversal buy trading signal is confirmed when a candle closes above the neckline, this is the opening of the candlestick on the left side of this inverted hammer candlesticks pattern. The neckline point in this case forms the resistance level.

Stop orders for the buy xauusd trades should be placed a few pips below the lowest xauusd price on the recent low once a trader opens a trade based on this xauusd candlesticks pattern setup. An inverted hammer candlesticks pattern is named so because it signifies that the xauusd market is hammering out a bottoms.